The Australian National University survey revealed Australians believe the proportion of migrants from the Pacific to be three times the actual figure.Â
People also think the number coming from the Middle East is double what it is and they greatly overestimate the unemployment rate among immigrants.
"We find substantial and contradictory misperceptions," the report said.
The survey of 5000 people also revealed Australians tended to prefer less immigration, but this is not set in stone, lead author Alyssa Leng said.
"Australia has a lot to learn about migrants," she told AAP.
"It's important that a preference for lower migration is not taken as given, but as a starting point that people are willing to move from."
When Australians were shown news articles about immigrants improving housing affordability, support for immigration increased by four to seven per cent, whereas stories about negative impacts of migration decreased support by about five per cent.
While quantitative facts about immigrants could also change Australian minds, the study found migration narratives, were more effective at changing public opinion.
This means it is very important for the media to accurately report on both figures and the more emotive parts of their stories, as this could stabilise opinions and improve the quality of public debate, Ms Leng said.
Though most respondents generally did not support increasing migration, there were some key exceptions.
High-skilled immigration enjoyed strong backing as did migration from the Pacific, which meant the government could expand programs with nations like Tuvalu.
Even though the federal government has committed to cutting international student intakes, the survey also found most respondents did not support a reduction in student visas and many called for the numbers to stay the same.